First double digit growth in a year for Malaysias economy
First double-digit growth in a year for Malaysia's economy

First double-digit growth in a year for Malaysia’s economy

Malaysia's economy seats a double-digit increase in the third quarter for the initial in a year

First double digit growth in a year for Malaysias economy

November 14, 2022: -On Friday, Malaysia’s economy published a double-digit increase for the initial time in more than a year in the coming quarter, which improved by increasing domestic demand and strong exports, the central bank added.

In July-September, gross domestic product (GDP) increased 14.2% from the previous year, faster than the 11.7% increase forecast in a Reuters poll, starting from the 8.9% annual increase in the last quarter.

That was also the promptest growth since the next quarter of 2021 when the economy expanded by 16.1%.

Bank Negara Malaysia said the increase was driven by a continued domestic demand expansion, a strong labor market recovery, robust exports, and ongoing policy support.

“Because of the healthy growth outturn, increasing this year will exceed the 7% lobbed,” BNM Governor Nor Shamsiah Yunus told a news conference.

Malaysia’s economy is recovering strongly from a pandemic-inducing slump, though risks of a global slowdown cloud the outlook.

In the previous month, the government revised its growth forecasts for 2022 to 6.5%-7.0%, starting from 5.3%-6.3%, but it anticipates economic growth to slow to 4.0%-5.0% in the coming year.

Headline inflation peaked at 4.5% in the third quarter and is anticipated to moderate, but it will remain elevated, BNM said.

This year, inflation in Malaysia has been primarily contained by record government subsiding and price control measures. Still, upside risks remain, with the central bank providing its fourth consecutive 25-basis-point rate hike in the previous week.

Since May, BNM has been raising rates by 100 basis points from historic lesser of 1.75% to temper inflation.

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First double-digit growth in a year for Malaysia's economy
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First double-digit growth in a year for Malaysia's economy
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Malaysia’s economy published a double-digit increase for the initial time in more than a year in the coming quarter,
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The Women Leaders
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